monday. jon: brand new stories and breaking news. president obama and house speaker john boehner speaking today about what is needed to avoid a potential economic crisis in january. an ohio teen sentenced in a deadly plot to lure victims with phony job offers on craig's list. silent killers of superstorm sandy d the threat of carbon monoxide exposure, dangers from downed power lines and contaminated water. it is all "happening now." jon: iran uping the stakes with the standoff over the west on its nuclear program. a good friday morning to you. i'm jon scott. >> i'm jamie colby. good to have you here. i'm in for jenna lee today. talk about happening now, there is lot happening this hour. let's start with this. iranian warplanes opening fire an unarmed u.s. drone?

the pentagon said it was flying over the gulf. that international waters. fortunately the drone was not damaged. jon: all this as the you know announce as fresh round of new diplomatic talks with iran next month. national security correspondent jennifer griffin live at the pentagon with more on this. this happened november 1st. why are we hearing about it now? >> reporter: that is a good question, jon. i don't have the impression that the pentagon wanted to talk about the incident. reporters were getting wind about the incident. were asking questions about and that's when we heard officially from pentagon spokesman george little. >> it will come up here that the white house might have asked you to muzzle this incident before the election. did the white house give you any guidance whether or not to release information on the incident or not? >> i think said this two, three, four, five, times, now. we don't typically comment

on classified surveillance missions. i will not get into discussions at the classified level that occurred between this department and the white house. they were informed early on. >> reporter: at the same time, little said this was a routine surveillance mission over the maritime straits. it is not clear why such a mission would have been classified, jon. jon: pretty hard to understand how the iranians missed if they sent jets after this thing. they ought to be able to blow it out of the sky if they wanted to. >> it is not clear whether they intentionally missed or are really bad shots. what we do know the two su-25 fighter jets. jon: iranian fighter jets circled twice around the predator drone. the pentagon says it was 16 miles off the coast of iran in international waters. they circled twice. these jets as you know, fly about 500 miles an hour. the predator is very slow. it moves at 135 miles an hour. it is highly maneuverable

but it's slow. we're told by the pentagon spokesman that the iranian planes fired twice but missed. the question is did they intend to miss or are they bad shots? we're told they followed the predator for a bit. that is also hard to visualize because the su-25s fly so much faster than the drone. also if they did fire at the u.s. aircraft in international waters hard to see how that is not viewed as an act of war, jon. jon: serious stuff over jennifer griffin at the pentagon. lots of answer to guestimate jamie: to politics now. the fub pub party may come to a crossroads an issues like immigration after taking a beating from hispanic voters. big changes are necessary if the gop wants to connect with what is the fastest growing demographic group in the u.s. right now. molly henneberg live from washington with more. good to see you, molly.

>> reporter: good to see you, too, molly. fewer and few irhispanics supported gop candidates over the past three elections. look at the numbers. governor romney won the support of 27% of hispanics. that is down from senator mccain in 2008. he got 31%. and that was down from the 44% president george w. bush got in 2004. clearly this is a trend that is worrying republicans. conservative columnists and fox news analyst charles krauthamer wrote in his column today hispanics should be a quote, natural republican constituency because they're often catholic and socially conservative for example, on issues such as abortion. krauthamer says it is time for the gop to shift tactics on immigration. he writes quote, it requires but a single policy change. border fence plus amnesty. yes, amnesty use the word. promise amnesty right up front. secure the border with guaranteed legalization to follow on the day the four

border state governors affirm that legal immigration, illegal immigration has slowed to a trickle. president obama also has supported the dream act. legislation that would provide a way for young illegals, brought here by their parents, to gain legal status. and his administration said earlier this year that it would stop deporting certain young illegal immigrants. hispanic advocates say this went over very well among hispanic voters. >> in the past he defered action for undocumented children five months before an election. although super political it still faredwell with hispanics. so there is a problem with engagement with conservatives and also immigration issue. we really need to watch the tone and rhetoric and come up with solutions. >> korn says republicans need to do a better job explaining what they're for immigration, instead of what they're against. jamie? jamie: molly henneberg live in washington. thanks. jon? jon: right now the

high-stakes showdown over the so-called fiscal cliff. president obama expected to ask congress in his first white house appearance since the election to act to avert looming tax hikes and steep budget cuts set to kick in at the end of the year. fox business's rich edson live at the white house with an update. >> reporter: good morning, jon. president obama speaks a little after 1:00 this afternoon. a white house official says he will have audience comprised middle class americans and other stakeholders who want to see balanced approach to insure taxes don't go up on middle class americans. that meant to democrats before the election keep taxes where they are for families earning less than $250,000 a year and tax rates to increase on those earning more. the tax rates are almost all scheduled to go up at the gyping of next year, part of what is known as the fiscal cliff. half trillion dollars in spending cuts and tax increase from the federal government that will supposed to throw is back into recession according to analysts if congress doesn't

act. other democrats are talking about this as well. some are saying that the vote that kept president obama in the white house and democrats in control in the senate is an indication this is a. ma date to raise taxes on those earning more than $250,000 a year. we're also hearing from republicans. republicans say they don't want to tax rate increase but house speaker john boehner says he is willing to talk increased revenue so long as it is part of an overhaul of the entire tax code which they will have to complete next year. everyone is trying to stake out the initial positions on this as we get to the end of the fiscal cliff and these negotiations. they have goll until the end of the year. jon. jon: lots of work ahead. rich edson at the while house. thanks, rich. jamie: we have a nor'easter but another extreme weather alert for you unfortunately. that nor'easter brought record breaking snow to the northeast. it is moving out and leaving quite a mess in its weak. we're watching a new storm

to the west expecting to bring blizzard conditions to the rockies. meteorologist janice dean who had a quite a few busy weeks in the fox weather center. now what, janice. >> the northeast will have a period of several days where it will be warmer and dry. so that is the good news. we're saying good-bye to the nor'easter. there it is right there. see that little spin? not affecting anyone right now. a little bit of rain and wind for eastern canada. it is off to sea. the next weather-maker is the west. we have a big ol' system brining rain and wind and snow and blizzard conditions to montana. so driving will be very difficult, if next to impossible for a lot of these areas. heavy snow, wind gusts, 40 to 50 miles an hour. all of this, or some of this energy is going to move into the central u.s. let's look at the future radar saturday into sunday. what does that mean? the possibility for severe weather unfortunately for the central u.s., the central plains. anywhere from oklahoma up

towards minnesota and then tomorrow, the threat or rather the sunday the threat will be across the into oklahoma. we could see hail, damaging wind and even isolated tornados. keep an eye to the sky if you live in these areas. we'll keep you posted a quick look at highs tomorrow. because of that storm system, very cold across the west. look at some good news. it will warm up across the northeast for folks who are still without power and thankfully it is friday and we're heading into the weekend. we all could use a little bit of good news. jamie, jon, back to you. jamie: heat for so many people. never seen anything like it. jon: it is incredible. jamie: we'll help folks out next hour letting them know how to deal with the situation. jon: we'll do what we can. >> prayers. we need your prayers too everybody out there. jon: that's the best, thank you. a cereal bank robber armed with an assault rifle strikes again. the urgent manhunt for the

ak-47 bandit. considered armed and dangerous. gas rationing going on right now in new york. is it working to ease those long lines we've been showing you? >> oh, my god, it is so frustrating. the years i've been here in new york i have never seen gas being rationed. this has just been awful. what can we do? that is mother nature. we have to deal with the good and the bad sometimes, you know.

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jamie: "happening now", we have some crime stories we're keeping an eye on for you. sentencing is scheduled today for an ohio teen convicted for his role in a deadly craig's list plot. it all hinges on a possible last minute bid for leniency otherwise the teen could face life in prison without parole. an armed bank robber on the run since shooting an officer in february strikes again in idaho. the fbi offering a 50,000 dal reward for any information leading to the arrest of the "ak-47 bandit"

seen here. a texas junlt decides to free that jetblue airlines pilot. he could have ordered him committed to a mental health facility. remember he was charged interference with a flight crew running through a plane yelling about terrorists? that happened back in march. he was found guilty -- not guilty by reason of insanity and he walks. >> this is more severe here because we're further down the supply chain. we feel it will help mitigate the worst of our problems. jon: that is new york city mayor michael bloomberg ordering gas rationing to begin in the city today. superstorm sandy wreaking havoc on petroleum infrastructure in this area leaving gasoline in short supply for millions of drifrsz. harris faulkner is live in the new york newsroom with nor. >> reporter: we knew this was coming. after his news conference yesterday mayor bloomberg said he would put a odd-even

gasoline program into motion. now that emergency order is official with him signing it today. here is why. look at the long lines. growing anger. growing lines over the shortage of fuel in the city. the good news though this morn, the pumping stations, refineries and infrastructure you were talking about, jon, that was all damaged or left without electricity following sandy are coming back online. a pipeline that feeds gasoline to the millions of who live in the new york city five boroughs is finally operational but it is not instantaneous and that's the problem. while the system tries to catch up with all the demand out there, the mayor wants people to look at their license plate numbers and buy days that correlate with the even or odd number on that plate, you will be able to buy gas in the area. for instance if your plate ends in an odd number, today is november 9th, that means it is your day to buy goss. even numbers tomorrow and so on, so forth until further notice. we should mention governor

chris christie did this in new jersey six days ago where i live, i can tell you it is working well there. in fact so well the governor there says he will look at taking the emergency order away in new jersey the he will take a peek whether or not he wants to do that this weekend. speaking of new jersey, a whole different critical problem there. still 260,000 customers without electricity. that is punishing right now. this snowstorm yesterday brought bitter cold temperatures to the region. living without power or heat or hot water is just plain cruel. >> we all have wells, which work on an electric system. you know, we have to get water to go to the bathroom from somewhere else. and flush our toilets. that's the problem. i have an electric stove. i can't even cook. >> reporter: well in new york city some 220,000 people without electricity too, mostly out on long island.

>> you went to the mall to keep warm? >> oh absolutely. it was freezing, freezing. >> what are you guys going to do tonight? >> under lots of covers. under lots of covers. i have five or six different layers worth of stuff. i have a heart condition. i'm arthritic. he is die betic. nobody cares. >> reporter: but we do care. it is such a huge, huge thing to deal with. those numbers i gave you, about a half million customers now across the two states without power. and there is this to add. the nor'easter that brought those several inches of snow this week created new power outages. so the numbers of people without heat are disturbingly high in both those states. also hit by superstorm sandy, connecticut which at one point at 625,000 people without power. now nearly everything restored there. i know they feel like they have been left out. let me tell you, utility companies are coming intense

pressure and criticism today. governor cuomo of new york is threatening legal action if he finds cause. fema is starting to bring in mobile homes for emergency housing. there are warming shelters but not nearly enough. and this just crossing the associated press wires. i just ripped this off the printer. let me give it to you. new jersey has filed the first lawsuits for alleged price-gouging stemming from superstorm sandy. the attorney general in jersey announcing the state is suing seven gas stations and a hotel in northern parts of the state. they're looking at that. now the gas stations accused of raising pump prices anywhere from 17 to 59%. that is not cents. that is percent higher during the state of emergency related to the storm. the hotel they're looking at in northern new jersey is accused of raising room rates by 32%. the fine? 10,000 if they find those people guilty of doing that. that is so cruel to do on top of everything else, jon.

jon: the aftereffects of this storm will reverberate a long time sounds like. harris faulkner. >> sure. jamie: the terrorist attack on the u.s. consulate in libya we're still talking about it and this is an interesting and frightening development at the same time. there are new concerns now that jihadists will use the benghazi attack as a model for future attacks which could be on the united states interests here. what to make of the chatter out there? walid phares, our terrorism analyst will join us. he will tell us what he is hearing and what it means. plus, you've seen stupid criminals before. this one didn't give much thought to his escape plan. smile. he stood there with a clerk who was smart enough to keep him trapped inside long enough for the camera to get a good shot of him. we'll show you again. maybe you can help police nab this bad guy. let's listen n

boehner. >> we can replace the spending cuts and extend current rates paving the way for entitlement reform as well as tax reform. with lower rates. 2013 should be the year we

begin to solve our debt through tax reform and entitlement reform. and i'm proposing that we avert the fiscal cliff together in a manner that insures that 2013 is finally the year that our government comes to grips with the major problems that are facing us. this will bring jobs home, result in a stronger, healthier economy and a stronger healthier economy means more americans working and more revenues, which is what the president is seeking. this framework can lead to common ground and i hope the president will respond today in that same spirit. that is on wednesday. this is an opportunity for the president to lead. this is his moment to engage the congress and work towards a solution that can pass both chambers. earlier this week the president and i had a short conversation. it was cordial. i think we both understand that trying to find a way to

avert the fiscal cliff is important for our country and i'm hopeful that productive conversations can begin soon so that we can forge an agreement that can pass the congress. with that, i will be happy to answer some questions. >> [inaudible]. >> when the president and i have been able to come to an agreement there has been no problem getting it passed here in the house. >> [inaudible].

>> well, clearly, the deficit is a drag on our economy. and we can't continue to spend money that we don't have. i, i don't want to box myself in, i don't want to box anybody else in. i think it is important for us to come to an agreement with the president but this is his opportunity to lead. >> mr. speaker? >> no, no. you violated rules. disqualified. yes, sir. >> notably the other day, you made a point -- revenue at least on the table. can you give us an idea -- [inaudible] if tax rates are not on the table are you talking about going after deductions? >> it is clear there are a lot of special interest loopholes in the tax code

both corporate and personal. it is also clear that there are all kinds of deductions, some of which make sense, others don't. and by lowering rates and cleaning up the tax code we know that we're going to get more economic growth. it will bring jobs back to america. it will bring more revenue. we also know that if we clean up the code, make it simpler, the tax code will be more efficient. the current code only collects about 85% of what's due the government. and, it's clear if you have a simpler, cleaner, a fairer tax code that efficiency, effectiveness and efficiency of the tax code increases exponentially. jake. >> obviously the president won re-election -- [inaudible] >> there's a republican

majority here in the house. the american people reelected the republican majority. and i'm proud of the fact that our team, in a very difficult year, was able to maintain our majority. there are a lot of races out there outstanding but, it's clear as a political party we've got some work to do and i think the principles of our party are sound. we believe in individual responsibility. we believe in empowering our citizens. we believe in the american dream and want that dream for everyone but how we talk about who we are as a party and is clearly a conversations are underway and will continue. >> mr. speaker on a different issue do you have, do you plan to have a vote next week on the russian trade legislation? >> you will have to ask mr. cantor. i don't schedule the floor. >> mr. speaker, is it fair

to say -- [inaudible] >> it's an issue that will have to be addressed sooner rather than later. >> [inaudible]. -- said there were overwhelming number of americans in favor of raising taxes on the wealthy. are you guided by this principle? >> listen, the problem with raising tax rates on the wealthiest americans is that more than half of them are small business owners. we know from ernst & young, 700,000 jobs would be destroyed. we also know that it would slow undo our economy. this is about, number one issue in the election was about the economy and jobs. everyone wants to get our

economy moving again. everyone wants to get more americans back to work again. raising tax rates will slow down our ability to create the jobs that everyone says they want. jonathan. >> [inaudible]. >> listen, we've got, we're spending a trillion dollars more than what we take in. you can't continue to do that. this is year two of a 25-year demographic bubble that wasn't like anyone couldn't see it coming. 10,000 baby boomers like me retiring every day. 70,000 a week. that is 3 1/2 million this year. and this is just the second year of the 25-year baby boom bubble. and it is not like there is money in social security or

medicare. this has to be dealt with. so everything, everything, on revenue side and on the spending side has to be looked at. >> mr. speaker -- >> i wasn't calling on you, my goodness. i'm not blind. >> [inaudible]. >> no, the young lady here. >> [inaudible]. >> well, i'm not talking about 3,000 page bill. what i'm talking about is a common sense, step by step approach that would secure our borders, allow us to enforce the laws and fix a broken immigration system. but again, on an issue this big the president has to lead. i think members on both sides of the aisle want to resolve this issue. the president will have to lead here. >> [inaudible]. >> i'm not going to get into

any of the details of how you would get there. it is just time to get the job done. >> [inaudible]. >> no, i really would rather not do that because i don't want to limited the options that would be available to me or limit the options that might be available to the white house. there are a lot of ways to get there and, i don't really want to preclude anyone who might have a good idea about how we move forward. but it's clear, it's clear, that we've got to fix our broken tax system, and we've got to deal with our spending problem. >> [inaudible].

>> nice try. >> mr. speaker, tabs reform selling it to your caucus in terms of increase in revenues versus something that is revenue neutral, something we heard in the past? >> we've had this discussion over the course of the last year-and-a-half. as you all know the president and i were attempting to deal with this problem a year and a half ago, there that there were revenues on the table. you can produce revenue and put revenue on the table through fixing our broken tax system, getting our economy going again, and getting more americans back to work. thank you, everybody. jon: the speaker of the house, john boehner there saying that, well, the president has to lead. that seemed to be his primary charge.

telling, telling those assembled in the capital building there it is up to the president to lead as we get ready to, well, come up with some solution to this fiscal cliff that stairs at this -- stares at the nation at the end of the year. let's get a fair and balanced debate underway. monica crowley, fox news contributor and julie roginsky, former political advisor to new jersey senator frank lautenberg and fox news contributor. he seemed to be throwing down the gauntlet, your game, your turn to put something on the table. >> yes. he is saying any increase in tax rates will slow down the economy and slow down job creation further than it already is so the republicans will not go for that. look it is up to the president to lead in negotiations. you can't have 535 members of congress leading. the president has to do so. we'll hear from the president in about an hour and a half. what we're now hearing, jon, the president will be moving

even further to the left. in other words, used to be, argument, let's raise taxes on super-rich, those maybing a million dollars or more. then they lowered to those making $250,000. the president in about an hour and a half will lower that threshold to those making over $200,000 a year, which essentially means the middle class, they are coming after you. jon: julie. >> well look, i said this before the election and sincerely meant it. if mitt romney won the people would have spoken and agreed with republican mandate. that is not what happened. barack obama won re-election. so therefore, republicans have to understand that a view was rejected their view was rejected and certain other view which president espoused last four years was not rejected. you can be happy or unhappy about that. the problem if republicans keep obstructing, republicans keep saying can't go back to the clinton tax rates, they keep doing it and keep getting rejected at polls. they need to compromise, but president needs to lead but we'll reject the main platform he wants to lead on

what is to lead on? they're not coming to the table to compromise. >> we have divided system of government. we have two houses of legislature and you know, john boehner got reelected and you know -- >> and republican house got re-elected. look when democrats talk about compromise that usually means from their view, that the republicans should become more like democrats. that republicans should move to the center or to the left. every time democrats gotten defeated say 2004, they didn't move closer to the center. they didn't move to the right. they dug in and moved further to the left. there is nothing that suggests that the republicans should give up the game on this. the republican house of representatives is the only bulwark we have between ourselves and a complete economic meltdown. >> i will tell you this. when george bush got elected in 2000, democrats, much smaller margins than barack obama just did, democrats went along with him, some on bush tax cuts, we did have bush tax cuts passed. some democrats supported them. that is the idea of compromise. this electorate has spoken.

same thing happened in reverse on tuesday. and you guys have to come to the table -- can't keep obstructing. >> bush tax cuts, there were two waves of tax cuts, in 2001 and 2004 you're right, that led to 54 consecutive months of economic growth. >> it led to record deficits which you guys only apparently care about when democrats are in the white house and led to humongous plunge in 2008 -- >> came under obama. not -- >> george bush was handed a surplus and left with a deficit. you can't talk about the fact that bush didn't do anything -- >> we had a national security emergency. >> well, you know what? if you want to fund two wars then you should probably not lower taxes while you're at it. >> when the enemy comes to us. >> you're absolutely right. don't lower tax cuts at the same time and worry about the deficit later. jon: politically, you're something of a political expert. politically is it smart for john boehner, okay,

mr. obama, you won the election, you need to lead? >> well, yes. he is putting the ball in the president's court and saying, say come to us with your plan. you put together a bipartisan commission, bowles-simpson on deficit reduction, tax reform, entitlement reform, you blue it off and threw it in the garbage can. are you willing to address the serious and economic fiscal issues this country faces going back to our own commission's plan here? i think if obama did that and i don't think he will because he is pure leftist ideologue, if he did that then i think he would actually get a hearing from the republican congress. jon: why not endorse simpson-bowles? >> i love it. why didn't paul ryan, your standard-bearer, monica, why didn't he vote for simpson-bowles? he voted against it. >> because it didn't address health care spending, julie. >> you endorse bowles-simpson all of sudden there are problems with this or do you not? >> negotiating starting point when the president blew off. >> paul ryan voted against it. here is the bottom line if

we keep doing what monica and i doing, we'll stick to our position and they will stick to their position, nothing is going to get done. both side need to come to the table. both sides need to compromise. >> willing to compromise on? >> for actually, on spending? >> absolutely, monica. not just spending but entitlement reform something he tried to do. >> he didn't try to do. >> grand bargain eric cantor and paul ryan tanked. >> first term the president fundamentally unserious about deficit reduction why we have these record four years of trillion dollars plus deficits. he was fundamentally unserious about tackling entitlement reform. there is nothing in his background or history or character to suggest that will be different in a second term. >> well, i don't know. maybe, i don't think so but i think so he came to the table wanted to strike a grand bargain. said i will negotiate on deficit reduction addressing

entitlements and a national that. >> he -- anathema. >> you can't have it one way without coming to the table and -- [both talking at once. >> republicans need to give on something too. jon: i'm not going over and sit on the other set. you two can continue a conversation. seriously the speaker of the house just said we can not continue to spend a trillion dollars a year more than we're taking in. can you two agree on that. >> absolutely. >> as absolutely. see serious spending restraint and spending reform. julie talks about the clinton tax rates. maybe boehner should call obama's bluff, okay you want to go back to the clinton tax rates which means raising rate on highest earning. terrific we must go back to the clinton era spending levels. i don't think the president would go for that. >> all for it. you know what? that is a great negotiation starting point. you and i can agree on that the two of them can as well. jon: wow peace is breaking

out all over. julie, monica. thank you both. jamie. jamie: they get along great. they just disagree. check this out. show you the video. there was a robber who completely picked the wrong store clerk to rob. there he is on the other side of the counter. the clerk traps him in the store and grab as beautiful shot of the bandit. the thing is authorities need your help identifying this guy. we'll show it to you again and ask for your help. that's coming up. plus pretty serious stuff. iran is firing on a u.s. drone. just the latest foreign policy skirmish for the white house to deal with. what other challenges will the president need to address overseas in the next four years? might be with a new secretary of state. who should have the reins of the department of defense, the cia? that and more with four-star general jack keane. he will give his insight straight ahead. is what drives us to broadcast the world's biggest events in 3d,

or live to your seat high above the atlantic ocean. it's what drives us to create eco-friendly race tracks, batteries that power tomorrow's cars, nearlyndestructible laptops, and the sustainable smart towns of the future. at panasonic, we're driven to make what matters most better. just another way we're engineering a better world for you.

jamie: well new next hour,

thousands of people still without power after superstorm sandy. what needs to be done to prevent widespread outages when that next storm hits? united airlines flight crew calls for help in route to washington, d.c. military jets had to escort the plane to safety. we'll tell you what sparked that emergency. it is true, marijuana is legal in colorado but the state could be in for a regulatory nightmare. we'll break it down with a live report from denver. jon: a harrowing scene at a gas station in massachusetts. a guy with a knife robbing the place of 400 bucks but his quickest cape blocked by a quick-thinking station clerk who locked the door. the thief threatens to kill the employee if he doesn't open the door. the worker defending himself with a bat. the perp makes his escape smashing the glass on the door but not before letting the camera have a good look at him. if you recognize the guy and

have information call springfield, police. jamie: latest international flashpoint on president obama's plate as he heads into the second term. the white house could also see an entire reshuffling of top posts on foreign policy. four-star general jack keane, retired, former vice chief of staff of the army and fox news military analyst joins me now. general, great to see you. thank you. >> good to see you, jamie. jamie: thank you in advance because i know your insight will make us understand this better. first of all what do you make of the supposed firing on that drone? >> well, just another example of iranians wanting to use their influence in the region. they are clearly on the march. they want to control that region and want to have nuclear weapons to guaranty that level of control. it is a major foreign policy issue for us.

certainly the administration has done some damage economically to iran. they have had some economic setback but they are far from economic collapse. if they want to try negotiations and if iranians do make a deal, it must absolutely be verifiable. we've got to get rid of highly-enriched uranium but we've got a long way to go here. jamie: the israeli defense minister actually according to the associated press is reporting that uranium enrichment is down over the last eight months so maybe they're taking comfort in that but this isn't the first time iran has attempted or gotten a look at our drones. are you afraid of intelligence breakdowns and their overriding aim after these drones because they say it was on their airspace. the u.s. insists it was international waters? >> clearly our interests are the clashing in the middle east, the straits of hormuz to be sure. a major oil navigation point and these things are going to happen from time to time

but the major issue is that the iranians want control and domination of the region. their number one stated objective to achieve that is to push the united states out of the region. we can never lose sight what they're attempting to do. that's why i think we need a strong leadership role in the middle east. quite frankly these last few years we're disengaging and pulling back from the role. jamie: what about syria, what about libya? what else does the president have facing him now on his plate? who do you want to see in the positions of secretary of state, department of defense and the cia? >> well in reference to libya, i mean it's tragic. we've been handed a major defeat there. a u.s. diplomatic post burned to the ground and ambassador tragically killed with three others and the u.s. clandestine intelligence space forced to evacuate. i don't know what the precedent for that is. i don't have one myself. and al qaeda certainly is benefiting from that as is the radical islamic

movement. that is why you see al qaeda in syria. they're trying to influence that outcome, particularly in a post-assad era, so they have some influence. we have got to stay involved. i'm not talking about military involvement. i'm talking about diplomatic involvement. i'm talking about arming those moderates who are fighting to depose assad in syria. i'm talking about helping to train the libyan security forces which we should have done over a year ago so that they can control their own destiny inside their country as opposed to these militia groups, particularly al qaeda given rise. jamie: then, again, general, you have the muslim brotherhood, which their growth may be seen in the near term in the middle east. and also there are some concern now that the rebels, at least in syria where, i mean there is no denying, there is a massacre going on of innocent people. they, with their arms that you're suggesting maybe we should boost up, there is some concern that they may in the actually be friend by

foe. >> well, listen, certainly in syria there is not a homogenous group there. there are different factions lake we've seen also in libya. this much i do know. it makes common sense. if you sit on the fence and choose to do nothing and let it seek its own level, clearly al qaeda and others will try to dominate that situation for their own objectives. as you suggested, the muslim brotherhood as well. my judgment is, yes, we may not be able to determine the final outcome ourselves. that would be too ambitious but i do think by helping the moderates there, gain some influence, we may have some say in influencing what comes in a post-assad era. if you sit on the fence we guaranty we'll have nothing to do with the outcome and we're turning over the stage to the radicals to have their influence. jamie: quickly before we go, does secretary clinton stay? does general petraeus stay? and what about at the

department of defense, do you see leon panetta staying? do we need a change? what do you think? >> well i think that's december national security team and it has been, and i would love to see them stay but i think we all know it is probably not in the cards. that secretary of state and secretary of defense at some point are going to depart. i certainly hope they keep general petraeus on board as a director. jamie: i know you worked closely with him. he has been there the shortest time. thank you so much, general. always good to see you. it is pretty frightening stuff. >> good to see you, jamie. jamie: take care. jon: a lot of threats out there. then there is this here at home. in the wake of superstorm sandy a number about health threats remain. keeping your water clean. the threat of carbon monoxide poisoning. serious problems. what storm victims need to know right now. >> i am very stressed out. i don't know what time, i don't know what day it is,

what time it is, trying to feed my daughter. have no access to the outside world. i have no access to the computer, the tv. i don't know what's going on. it's been very, very difficult for me.

jamie: the doctor might be in but there are a lot of people out there who need medical attention. i've seen the victims of superstorm sandy and they're returning home, if they even have one, to face many more challenges. now it's all about the threat of serious illness from hypothermia, dehydration, even mold and carbon monoxide. storms like sandy can leave victims exposed to very serious health risks. first of all how we can help them and how you can help them. dr. marty mccarry, physician

of health from johns hopkins. a great institution. nice to see you, doctor. >> great to see you, jamie. jamie: there is lot of water out there. not a the low the heat either. carbon monoxide is a threat right now. tell us about it. >> people don't know about it. it is an odorless gas and generated from independent generators people bring in the homes or from stove tops. remember pipes can be dislodged whenever there is damage done. this gas seeps into homes. about 10% of all the deaths after katrina were from carbon monoxide poisoning. if you have trouble breathing, should have detector. if you're having trouble breathing or something doesn't seem right, you should get checked out. we're seeing a lot of carbon monoxide poisoning from people who don't sense it. jamie: i thought that the points that you raised were all very important. and we'll put up a full screen folks can have them in the back of their mind if they're feeling symptoms. mold fits in there certainly too with the breathing.

hypothermia is something a lot of people are experiencing because of no heat. but contaminated drinking water, i saw portable water fountains breezy point in long island. what is safe to drink right now? >> well there is only boil water advisories in certain areas of new jersey and connecticut. the rest of the areas, even though there's flooding, the water from the tap is safe to drink. general test if you can see through it is usually safe to drink. any food that has been touched by any floodwater or water that is mixed with sueage, that is dangerous. you know, a lot of these parking garages where cars were underwater because the water level was too high, the gasoline mixed with water. that is a stocks you can substance. that could contaminate any food or anything you can eat. mold should be dried and cleaned as soon as possible. those with asthma are at highest risk. jamie: so many people with part of their home left will have to bulldoze because of those issues. if you have health conditions already, we heard

from a woman earlier in this hour. diabetes. back problems, arthritis, this is terrible for you right now. probably some of us should not be going to emergency rooms in the area of storms during this season so that he we can let them be cared for. what can they do for themselves, what can we do for them? >> that is an important point. those at highest at risk for any health problems are those with chronic diseases and the elderly. after katrina, 50% of the deaths were people over the age of 75. those that are frail, on medications, many need dialysis, need to take insulin injections. at risk for hypothermia, as you mentioned, those are at the greatest risk for problems here. if you have a small problem and can avoid the emergency room please do. jamie: i like it, doc. thank you very much. hope we helped folks. >> thanks, jamie. jamie: jon? jon: some brand new developments, jamie, in the deadly attack on our consulate in libya. the latest as lawmakers get their first look at some previously classified

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jon: the national guard to start escorting medics to check on residents in new york city public housing who still lack heat and power. when they can expect some good news. the pentagon just confirming iranian war planes fired on an american drone over international waters. why they waited a week, and the latest warnings from the islamic republic. also, one state just passed a law to legalize marijuana, but the federal government is stepping in and saying, not so fast. ♪ >> well, as we sit here, the obama administration is facing growing pressure over the deadly terrorist attack in libya. welcome, everyone, to a second hour of "happening now," i'm jamie colby in for jenna lee today. jon: and i'm jon scott. lawmakers on both sides of capitol hill are saying they want more disclosure, calling on

the administration to reveal what it knew about the security situation in the days and weeks leading up to the attack and why it didn't do more to protect american personnel, including the u.s. ambassador, who were murdered in benghazi. chief intelligence correspondent catherine herridge live in washington with that. >> reporter: thank you, jon, and good morning. let's begin with another major development in the story, according to a letter obtained by fox news, the directer of narc intense has -- national intelligence has launched an inquiry to determine if there was a national security leak to a former new york times reporter who implies in the daily beast that he was privy to the same intelligence briefing as u.s. ambassador to the u.n. susan rice who appeared on five sunday talk shows september 16th and suggested the attack was a demonstration that spun out of control, quote: her -- rice's -- mistake was taking the initial intelligence at face value.

>> reporter: in the letter reviewed by fox news to the chairman of the house homeland security committee on behalf of the direct director of national intelligence james clapper and cia director david pay russ, it state: this is a very serious matter, and it has been referred to the appropriate staff for follow-up action. our normal process for investigating such incidents begins with a preliminary inquiry. >> there's a investigation begun of who gave this information to dr. leslie geld, and if this warrants a further criminal referral. this is a serious matter. to have a journalist be given access to the top secrets of the united states and not have it come from the cia, not have it come from the director of national intelligence, this seems to have been given to him by someone in the white house. >> reporter: fox news has

requested comment from mr. geld's office, and we'll bring that to you when we get it. classified documents will now be made available at a special meeting on capitol hill due to take place within the next few hours. this, though, is in camera which means that lawmakers cannot make copies and take any of those documents with them, jon, so with some access, but it is limbed. jon: and very quickly, just fair to say that none of these developments are making the white house's handling of all this look any better. >> reporter: i'll let the viewers decide on that one. [laughter] jon: fair enough. catherine herridge, thank you. >> reporter: you're welcome. jamie: they are so storm weary at this point. hundreds of thousands of residents in the new york and new jersey are spending today, another day without power. the recovery efforts from superstorm sandy do continue, but their patience is wearing pretty thin x they're spending yet another fringe squid night -- frigid night without electricity, it looks like.

hundreds of evacuees are moving into a tent center. you've got to see a picture of this, it's hard to believe that this is in the united states. and there are harrowing stories of survival as well from those who did make it through the storm. listen. >> i ended up running back in the house, all the way in the house, and the water was coming up higher. then i closed this door, and when i closed this door, the water was up this high now, so i couldn't get out. jamie: well, david lee miller is in new jersey and, david lee, i'm sure you'll talk to us about that tent city. who would have imagined? >> reporter: indeed, it is hard to believe. about 200 evacuees are there, but right now i'm in seabright, new jersey, not far away. this was a community devastated by the twin storms, and you can see it continues to recover. right here let's start, there's a restaurant, hootie's restaurant, out of business because of the storm, but that hasn't stopped its owner from distributing food. the national guard is here. they also have a kitchen set up. this is part of their facility

here. the actual cooking takes place in here, and over my shoulder you can see people taking a break. you've got the state police, other first responders who are here trying to restore seabright to normal. this is the main street in seabright, ocean avenue, and it was covered with up to 6-12 feet of water at the height of the first storm. right now with me is one of the residents here, bill with ostendorff. today there is a curfew here, you can only come into seabright to see your home, see property. what have you seen, what have you been able to learn? >> i haven't been able to get in yet. they have me boarded up, but i understand it was just for the snowstorm we just had, so i'm waiting for oem to come and let me in. >> reporter: any idea what you've lost here? how bad your damages? >> i got robbed. when we finally get in on tuesday, they got in and took watches and jewelry. so far that's all i know of. >> reporter: and where are you living now, how are you doing? >> i'm over in tuna falls,

i'mdown as best i can. >> reporter: living with relatives. before we go, jamie, i have to tell you about a football team here. the rumsen new jersey football team, and their community also devastated by the storm. the football team is here, the entire football team. this is a safety on the team, your name is -- >> davis. >> reporter: davis, you said you don't have electricity at home. >> no electricity, no heat, nothing. trees down, but i'm doing better than other people, most houses are destroyed. >> but you came here to another community to help. what is the team doing today here? >> just help pick up, putting fences around broken house, trying to do as much as we can, help around the community. >> reporter: working hard to try and rebuild. and i also have to point out that despite the begin storms, you guy -- the twin storms, you guys have a game, right? >> we have a game tomorrow. >> reporter: and you have an undefeated record. >> yeah, we're 7-0.

>> reporter: so despite the horrific nature of the storm, jamie, it's good to end on a positive note. life, indeed, does go on as does this massive recovery effort that is not going to take days, weeks, but months. jamie: david lee miller with the tough and also lighter side of the story. thank you, david lee. jon: nothing like high school football to perk up a community. right now we are three days after the presidential election, and we are still looking for a winner in the battleground state of florida. the delay due in part to changes in election law, huge voter tonout and a deluge of -- turnout, and a deluge of ab absentee ballots. phil keating live in miami with the counting. so who is still counting, and will they make it by the deadline tomorrow? >> reporter: well, jon, in the entirety of the united states of america, there remains just one county still counting, that is florida's palm beach county. that's right, the same one from

the 2000 butterfly ballot. they are still counting absentee ballots, and the latest word from the secretary of state's office up in tallahassee is that palm beach county's elections supervisor promises that by today they will have completed counting election day ballots. here's where we stand right now on the scoreboard for the state of florida. president obama winning 49.93% compared to governor romney's 49.21%. so the president leads by nearly 61,000 votes. and because palm beach county is a democratic stronghold, it seems almost a sure thing that president obama will win the state of florida. the romney campaign and the republicans aren't actually officially conceding, but here's what florida republicans sent to us in an e-mail statement. quote: given the democratic wave that swept the nation, we're glad we kept it in close in florida which enabled us to

retain large majorities in the florida house and senate, but it's always a disappointment to come up short in races we thought we could win. the obama campaign really haven't had to deal with declaring or conceding florida because the president's already won electoral college votes to put him back in the white house. jon: phil keating live in miami, thanks, phil. jamie: i mentioned syria earlier, and we see some new developments going on there. you know about the ongoing crisis. syria's president coming out with some really surprising comments about the rapidly-deteriorating situation in his country. >> it's about terrorism and support coming from abroad for terrorists to destabilize syria. this is our war. jake jake leland vittert live from jerusalem, i'm sure, with another part of the story. leland? >> reporter: despite the president of syria's comments, it certainly looks like a civil war there on the ground. the amateur video we've seen coming out of the country for now more than a year shows the

rebels fighting bravely but largelyic effectively against a better-equipped, better-armed syrian army which is stopping at no ends to try and crush the rebels, not only kill the rebels, but also destroy a number of the towns they have taken up safe haven in. although to the president's point, these are not entirely home-grown rebels. they are being armed and financed by the sakis, the ca -- saudis, qataris, turkey, and there are a lot of foreign fighters coming across the border from libya and from iraq, a number of whom are hard core i jihadists there. and the other thing that is happening in this story is the growing humanitarian crisis. just to the north in turkey some 10,000 syrians fled just in the past 24 hours trying to leave the fighting and go into turkey where there are now massive refugee camps, a total of about 100,000 people now taking ref few in turkey. and we are coming up towards the winter in the northern part of syria where the mountains there get very, very treacherous.

you're going to also have fuel shortages, food shortages and, of course, with a number of the towns destroyed, there's nowhere for these people to take shelter from what is going to be increasingly coming a very harsh winter. to put it in perspective, jamie, right now we have 36,000 people who have died in this crisis, many more than 100,000 refugees, and those numbers are going to only continue whether you call it a civil war or an armed insurgency. the humanitarian toll is going to continue to rise through this bloody winter. jamie: you're so right, leland. take care. jon: well, now that the presidential race is in the rearview mirror, finally, what lessons can both sides learn from this long, hard-fought campaign in we're going to take a look with a couple of experts. plus, as utility companies struggle to get the lights back on in the northeast, they are also exploring new ways to prepare for the next superstorm. does it have to be this bad? a look at the new technology, just ahead.

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jon: let's get some final thoughts, now, on this 2012 election campaign just ended and the political lessons learned. bob beckel is a co-host of "if five" here on fox news channel, ed rollins has managed many republican campaigns including ronald reagan's run for the white house. we generally get you guys together under the banner of a segment we called who won the week, but i this think we all know who won this week. what are the lessons to be learned? to you first of all. you know, is this democratic politics in avenn dance forever? what is it? >> not necessarily forever, but the key statistic out of all this were the percentage of people who were white who voted. it was 72%. the last four elections it's gone from 80 to 78 to 76 to 74

to 72. with the ascendancy of the hispanic community, and the blacks turned out in as large of numbers as they did before, the republicans simply can't put together a coalition without making some indentations in those constituencies. jon: ed? >> he's absolutely right. first of all, a campaign can make a 3% difference, a candidate can onl and romney wasn't a bad campaigner -- candidate the last month, but his campaign was never in the game in the same way that the obama qualm pain was -- campaign was. they spent hundreds of millions of dollars building organization over the last five years. they knew exactly where their vote is, and there's a game we all play, 50% plus one. they knew what their targets were in these eight or nine states, they went in, and they got those targets. they scraped every vote together, and they had 'em right on the money. we basically did a tv air campaign. the narrative never -- we got romney to a point where he was an acceptable alternative, but he wasn't a better alternative

than the president was. jon: what about the storm? a lot of people said, oh, the storm and governor christie's endorsement, that gave the race to the white house. >> i don't buy that. i think it was a component of it, but this was a structural problem, it wasn't a tactical problem. it wasn't a series of tactical issues. i never thought, by the way, that romney had momentum that last week. now, sure, to take him off the stage for three days, does that help? did it give obama a better platform? yes, it did. but was it the difference between winning and losing? the numbers are pretty substantial. ed mentions they look in ohio, they had 5,000 paid workers. 5,000 in 143 offices. i didn't have 143 offices across the country when i ran a presidential race. jon: but, ed, you know, there are a lot of stunned republicans, and maybe you're one of them, i don't know, who said, wait a minute, weave hardly ever reelected a president with 7.9% unemployment, and, you know, the actual unemployment rate that you could argue was higher than that. >> well, you should never

understatement your opponent -- underestimate your opponent or an incumbent president. jimmy carter was not particularly well liked, and he had disaster after disaster. this guy still remained liked by the american public, and when you look at people said romney was a better leader, he had a better vision, but he didn't relate to me. and the narrative of the romney campaign never basically connected him to ordinary voters out there. we didn't feel the pain that was going on many this country. >> in fairness to my friend here, ed picked this a month ago, but he didn't want to get beat up by his own party. the other two things i would say is ground games do matter, as we pointed out. makes a difference, two or three points. the polls were right. everybody jumped all over the polls with the exception of gallup and rasmussen, the polls turned out to be accurate. and the other thing is this $3 billion spent on a presidential race is so -- if somebody would have told me that when he and i ran a campaign together, i mean, it's mind-boggling, that much money. jon there are a lot of

television stations -- >> very happy, yeah. >> if you gave me $3 billion and let me run my kind of campaign, there wouldn't be a democrat anywhere in this country. [laughter] jon: so you're saying things like that 47% comment, the tax returns, that did hurt romney, you think? >> well, not only that, the major fundraising, the donors were catered to from start to finish, even the final victory party the guys with all their jets flying into logan reinforced that image of being a rich man. there was no blue collar guys, nobody carrying their lunch buckets and, obviously, with women we basically got murdered by these two idiot senate candidates talking about abortion and rape. in a year in which that should not have had any relevancy whatsoever. >> the other thing you can take away is negative commercials work. when they blasted romney out of the water for that whole spring, he couldn't respond. it was very tough to come back from that. jon: all right. bob beckel, ed rollins -- >> nice to be with you.

jon: thank you both. jamie: great to see you, guys. and also on the minds of many americans, the fiscal cliff. a lot of us looking for ways to save on taxes before the bush era tax cuts expire at the end of the year. coming up, what you should be doing now to keep more of your hard-earned money, especially in your retirement account. and iran firing on a u.s. drone over international waters, they claim. is it still an act of war? how should the u.s. respond? >> i can confirm that on november 1st at approximately 4:50 a.m. eastern daylight time an unarmed, unmanned u.s. military aircraft conducting routine surveillance over the arabian gulf was intercepted by iranian su-25 frogfoot aircraft and was fired upon with guns.

it looks like. it's a good time, though, to look ahead to your financial future. and today we wanted to help you decide whether or not you need to change any of your investments, especially if you're saving for your retirement. patricia powell is founder and ceo of powell financial group, and, patricia, at any age -- it doesn't matter if you have $50 saved -- you want to save your savings. so what do we need to do right now? because we're in the last quarter of the year. any quick moves? >> quick moves, i don't think they're just quick moves, i think they're longer-term moves. um, if you think that the fiscal cliff will effect markets, and i'm certainly in that camp, you want to rethink a lot about how you're investing whether it be in your 401(k) or your regular accounts. they're both going to be affected. i think people should actually think about it as though they're going into the next recession, and that's the advice we're giving in my office. to the extent, for instance, that you have equities in your portfolio, and i think most

people should have equities, instead of having growth stocks, i think they should have value stocks. growth stock tend to do the worst, they tend to go down about 50% more than the overall market in a market decline of any seriousness, so, um, we think that value is going to be holding up much, much better if we do go off the fiscal cliff. or if we're going into recession. i think you have to look at your fixed income. people have been tempted, and they've succumbed to the temptation of stretching for yield. they've gone out there, and they bought junk bonds, and they bought longer-term bonds because they can't get return on the shorter end of the curve. and while that would normally -- at least the longer end of the curve would be normally good advice going into recession, with ben bernanke's penchant for keeping interest rates almost at zero, i don't think that's a good idea at this point. and we would argue vehemently against having poor quality or junk in your portfolio, we would argue to have intermediate and short-term bonds but to have

good quality whether it be corporate, government, whether it be overseas. jamie: that's interesting, too, to look overseas for the rates that might be a little more than here. and you have to watch those carefully because if they do fluctuate or get called, you have to make another move. but it seems like people are saying it's all about capital gains and the higher tax rates if we are paid capital gains by companies because of the fiscal cliff. >> right. jamie: so should you look at what you have and ask your broker if you expect a capital gain on a particular equity that i have and we've made money on it, let's not be a pig about it. let's get out of it right now, pay the lower tax rate, and we can rebuy it down the road if it makes sense. >> i think everyone needs to look at their portfolio seriously, and it's very different this year, you're absolutely right. most years we would do tax loss selling at the end of the year, getting rid of the clunkers and taking those losses. this year i think you might want to consider taking some of your gains, and i think you said it very well.

let's not be piggish about it. take your gains, pay the 15% long-term capital gain presuming that applies to you, and particularly if we are going off the fiscal cliff, you won't mind having a little extra cash on the side. you might buy them back a lot cheaper if we do go off the cliff. jamie: yeah, i'm looking at the big board, a little better today but -- >> and it's been a tough week with big volume. jamie: well, not good. you just told people maybe they should consider taking some gains. thanks so much, patricia. >> thanks for having me, jamie. jamie: jon? jon: now i know. the president says we're not going off the cliff. let's hope he's right. jamie: absolutely. jon: a big celebration, but it wasn't limited to the obama campaign headquarters. how the mainstream media reacted, our news watch panel straight ahead with that. plus, rising tensions after iran tries to shoot down an american aircraft. >> we have a ride -- wide range of options from diplomatic to military to protect our military

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jon: the mainstream media erupting in frenzy, a celebration following president obama's re-election. after taking time out of their post-election coverage to mock republicans, trash conservatives and dump on the tea party. let's check in with our panel.

cal tomorrow as is a syndicated column news. all of them are fox news contributors. cal, your most egregious examples of post-election media celebration. >> we don't have enough time. that's why we had the news watch show for a whole hour that everybody should watch 3pm on saturday. how is that for an unsolicited plug. the media set the parameters. gas prices twice as much when george w. bush left office. when bush was still in office the media were at gas stations all over the country and telling stories about how people could hardly afford to fill their tank. the homeless, they only exist when a republican is in the house. once in a while in the media pays attention to them it's all george bush's fault. this president is inc is inheriting a material economy from the last present, that is himself. will they blame him?

i don't think so. they'll blame a republican house if they stand up for their principles against more spending and higher taxes. jon: "newsweek" won't be having many more covers. they are going to an online only magazine. here is the "newsweek" cover, the obama conquest, the president dressed as napolean i think you have to say. judy. >> basically what you're seeing is a reaction. i'm going to have to disagree with my good friend cal. i think you're seeing a surprised reaction. i think that most media commentators, when you look at the coverage before thewere tal, and 2 and 3:00 in the morning, and maybe an electorial college that would be neck-and-neck. none of that turned out to be true. and so people had to recover, and they had to do some new and interesting things. bob woodward on a fox news show was actually asked whether or not he thought the main-stream media helped reelect barack obama an said no, he didn't

think so, that the issues that the american people cared about were covered pretty well, and especially the economy. people made a decision, and i think we'll be debating the implications of that decision that the american people have made for some time and we should be. jon: maybe we can go back to the "newsweek" cover for a minute. there is a line at the top there that i wanted to bounce off of ellen, she probably agrees witness, it says, g.o.p., your old, your white, your history. ellen. >> actually i do think that and i did analysis of the great state of ohio where i'm from. obama won by 107,000 votes. had they reached out to some of the demographics, be it women, white people, there's got a big hispanic population in ohio i think that governor romney would have won. to me the most egregious thing that the news media did and has done is not do a state-by-state analysis of how much there was a win by and what would have happened had there even been

some slight demographic shifts in messages. jon: on election night for instance brian williams was talking to republican operative steve schmit cal and said they have to shut down rush limbaugh. >> now they are into censorship. what does that tell you? about the "newsweek" cover, if that's napolean people who know anything about history know about wate waterloo. he was overextended in russia. i think if obama takes this as a mandate to complete the restructuring of america he is sadly mistaken. one other quick point, though, i just passed on the way over here another revival of the musical "andee." that premiered in 1979 as the carter administration was going down the tubes and ronald reagan came into office.

i'm holding onto the song, the sun will come out tomorrow, bet your bottom dollar they'll be sun. jon: we all want this president to succeed but there are thorny issues out there, what are the media going to say in. >> we've already seen, jon, a super concentration on that fist alcliff. i don't think i can read one more story about it in any newspaper. i think the media are going to see whether or not barack obama meant what he said in his victory speech immediately after he was declared reelected, and that is, will he be reaching out to the republicans as he said he would? does he represent all americans and not just those who voted for him. can we really, finally come to grips with some of the profound challenges facing this country? that is what the media should be looking at and holding eup eric holderring him accountable for. jon: ellen i'l erichold him

accountable. jon: i'll have to give you the last word next time, ellen. jamie: we are learning new details about iran. -- we've got to get back to this. we are learning new details about iran's attempt to shoot down a u.s. drone last week. iran's defense minister is claiming that the unarmed, unmanned aircraft had violated iranian air space before the warplanes opened fire. they missed the target and the drone returned to the base unharmed. the pentagon was insisting that the drone was over international waters at the time and says the incident will not change america's mission in that region. >> the united states has communicated to the iranians that we will continue to conduct surveillance flights over international waters over the arabian gulf consistent with long-standing practice and our commitment to the security of the region. jamie: retired army lieutenant

colonel, he's a senior fellow for advanced studies. how are you today good to have you on. >> good to be on. jamie: if any foreign aircraft attempts to enter our air space our armed forces will deal with them, and he issued this statement after the incident where they shot at us but missed. our administration denies it and says it was international waters. does it matter, and either way should there be any action against iran? >> i hate to say this. it all depends. the legal definitions here are all very murky. they do have a 12-mile tere to territorial limit assigned to them, that we agreed to. there is another 12-mile zone called the continuous zone which goes out essentially 24 miles. then they have an economic exclusion of 200 miles.

the question becomes how do you interpret that? the chinese interpret anything within a 200-mile joan is something that you have to ask for permission to go into. if what we say is true, and again it's murky because the pentagon would not get into the quote unquote legal issues of this we just don't know. what i will say, jaime is that during the reagan years, i like looking back at history and see how we dealt with this sort of thing in the past. when we confronted by the libyans in this sort of theupbgt u.s. navy shot down moammar qaddafi's aircraft and we didn't go to war. is this an act of war? maybe, maybe not, probably not. much more severely secretary of defense panetta said we are almost at the vernal of a cyber pearl harbor with the iranians. are we looking at acts of war on the internet? how do you define that? we are in legal murky area. if someone shoots at our drone that is in international air space we have the right to

protect that drone. jamie: let me put those two together, you talked about the cyber attack and the internet. we really have no idea how one of our drones in december of 2011, let's put up a picture with the iranians bragging, here it is, it's pretty much intact, we can go in here and look at a lot of our intelligence, maybe some is destroyed at that point automatically. i don't know. i didn't like this picture very much. and, you know, maybe there is some plan of there to try to capture one of these. on the other hand i say to myself, kernel if they have nothing to hide and they are not enriching ooh rain yan for nuclear purposes why do they care if we go into their air space and take a look. >> i'm one that believes they are going forward with their enrichment program. frankly i think the drone may have been part of that. there are things you can do from orbit, great imagery, you can't do things regarding radiation, and par particulates. i think that is the mission of this drone why you have to have it in close. break, break, with that said the

iranians phau not want us sniffing around for the very point you point out, they may have something to hide waoefplt have to define what our policies will be. we never signed up to the law of sea convention. so, we are on limited legal ability here, but the clearish ooh here is what do we want to define as our policy, stick to that and of course follow what the intelligence tells us. again, we did this sort of thing against the libyans in the 80s. we were very clear about what our objectives would be, what we would tolerate and not tolerate. in this case i think we've shown a couple of times now, the iranians have pushed us, we haven't pushed back. there are legal issues we don't know about and we need to define what we will do instead of let them define us. jamie: it sounds like a real clear call to action for firm and solid warnings and we'll have to watch it and see what happens. nice to see you. >> nice to see you too, thank you. jon: my home state colorado is setting up a federal versus state showdown bypass ago ballot measure legalizing marijuana. we have the latest on that in a live report.

plus, victims of super storm sandy face another frigid night in the dark. power companies are also planning for the next weather disaster. could all of this hardship be avoided the next time? we'll take a look. >> we are losing a lot of trees, they are just taking the wire down. i thought sandy was going to be the end and then this came right up. [ male announcer ] when it comes to the financial obstacles

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i wish my patients could see what i see. ♪ that over time, having high cholesterol and any of these risk factors can put them at increased risk for plaque buildup inheir arteries. so it's even more important to lower their cholesterol, and that's why, when diet and exercise alonaren't enough, i prescribe crestor. in a clinical trial versus lipitor, crestor got more high-risk patients' bad cholesterol to a goal of under 100. [ female announcer ] crestor is not right for everyone. like people with liver disease or women who are nursing, pregnant or may become pregnant. tell your doctor about other medicines yore taking.

ll your doctoright away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. ♪ is your cholesterol at goal? talk to youdoctor about crestor. [ femalannouncer ] if you can't afford your medication, astrazeneca may be able to help. jon: as utility companies struggle to get ahead of massive power outages in the northeast some are investing in new technology that they hope will get the lights back on faster in the next storm. help can't come soon enough for the victims of sandy and this week's nor'easter. >> we ran out of poles, believe it or not. they ran out of poles. how can you run out of poles? yeah. and then we have utility companies competing with each other to find the poles. >> that's new york governor

andrew cuomo and he is not happy. gregory reid is director of the power and energy initiative at the university of pittsburgh. gregory, you know, i'm fortunate, i live close to the hudson river in a fairly new development, and although the river came up and almost swamped our place it didn't do any damage, and the lights even stayed on, i think because, you know, we have underground utilities, everything is buried underground. is that the solution in. >> that's part of the solution, jon, absolutely. in order to make our grid infrastructure morey sill kwrapbt we have tmoreno resilient we have to look at the implementation of new technologies that make underground infrastructure more affordable and operational lee efficient as well. jon: some say it is better to spend money on this above-ground process on some of these smart developments rather than burying the lines which can cost, obviously billions of dollars.

>> i think we need to look at it strategically. certainly it does cost more to go underground. we have to look at the cost justification strategically in certain areas where it makes sense to do so. one of the things we see every time we have these massive outages, due to storms or other events is that it does come with an economic impact. if you look at the impact right now of sandy, i've seen estimates for new york alone that add up to over $33 billion. so you begin to aggregate that with irene and katrina and other events over the years, and the billions start to add occupy. so when you start to look at up front costs associated with hardening and improving the resiliency of our power infrastructure and new technologies it becomes a question of spending it up front to avoid the inconveniences of these outages versus spending it on the back end with all the restoration efforts we have

going on right now. jon: i they will you what, there are a lot of people on staten island, parts of new jersey and long island that would like to see some of those improvements tomorrow. gregory reid, it's good of you to join us. thank you. >> thank you, you're welcome, my pleasure. jamie: fox news alert for you. we've been talking about the fiscal cliff. will it happen and what will the president do about it? we may learn next week. it is certainly going to be a topic of discussion as the "associated press" is just reporting in our wires, in our urgent as well, that congressional leaders now have an invitation to come to the white house to speak to the president about the fiscal cli cliff.

jamie: colorado's governor says he will certify his state's ballot measure decriminalizing

possession of small amounts of marijuana. the law requires you have to be over 21. marijuana could be taxed at up to 15%, but pot is still illegal under federal law. so what does it all mean? alicia acuna live in denver. >> u.s. attorney general eric holder has a phone call scheduled with colorado's governor. the governor disoppose amendment 54 as did the state's attorney general. here is what he had to say. >> there are a lot of laws that i think that are stupid that i support and, you know, provide legal advice on every day. this will just be another one. >> reporter: once this law is certified by the governor the state will no longer go after possession for up to one ounce. the measure allows folks to grow up to six marijuana plants. after a tax system is set up and licenses are issued there could be stores to sell it. that is a long way off, though. the department of justice

released a statement after the historic passage it reads, the department's enforcement of the controlled substances october remains unchanged. in enacting the controlled substances act congress determined that marijuana is a scheduled one controlled substance. we are reviewing the ballot initiative and have no additional comment sit. we talked to constitutional law professor at university of denver sam camen who says this situation is quite unique. >> it's a time of pretty exceptional transition in the regulation of marijuana laws. what happened in washington and colorado is really different than what's happened in the other states that have moved toward legalization, because we've taken the medical piece out of it. >> reporter: some are reading into the tourism aspect of this. jaime. we are hearing about weed-related tour buses, not exactly sure where they are going to go. as you can imagine this has some people quite upset because they are worried about the state's reputation.

and i can tell you from talking to the state's attorney general someone lit newspaper front of of him the other day, and to say he was agitated is a bit of an understatement, back to you. jamie: let me just process that one. thanks, alicia. jon: we are awaiting a major announcement from president obama concerning the looming fiscal cliff. we'll bring it to you live as soon as it happens. plus, a developing crisis here in the northeast, as hundreds of thousands still suffer in frigid weather. they have no light, no heat. now a new problem, more gas rationing. the very lateness a live report just ahead. >> it has worked well in new jersey, and although the shoef the shortages are more severe here because we are further down the supply chain we feel it will mitigate the worst of our problems. >> this is horrible, horrible. >> very frustrating. to compete . what we need are people prepared for the careers of our new economy.

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jon: after superstorm sandy and the new nor'easter, according by a study by british scientists, the mayan century collapsed after a century long drought. you can probably bet that it was not man-made. researchers say that the rise and fall of a sophisticated stylization failing to adapt successfully to climate change. jenna: do you know my about my job? because every day we leave smarter. who knew that? thank you for sharing. especially these last two hours. megyn: it's great to have you. i will be back tomorrow. megyn: jon: megyn: we began with a fox news alert. we are a